# STATE OFCONNECTICUT
DEPARTMENT OFENVIRONMENTALPROTECTION

In the matter of ) ) 

### The State ofConnecticut and ) ) 

### PSEG PowerConnecticut LLC ) Trading Agreement 

### and OrderNo. 8241**.~.** Whereas, the Commissioner of Environmental Protection ("Commissioner") and PSEG Power Connecticut LLC ("PSEG") agree that it is in the public interest that they work cooperatively
to improve the airquality within the State of Connecticut and that the use of emission reduction trading will achieve chis result in a timely and cost-effective manner:

A. At the request and with the agreement of PSEG, the 

### Commissioner finds the following:

PSEG is an exempt wholesale electric generating company

### with its principal place ofbusiness in Newark, New Jersey. On December 6, 2002 PSEG purchased from Wisvest-Connecticut, LLC and now owns

one fossil fuel-fired electric generating station, Bridgeport Harbor Station, at 1 Atlantic Street in Bridgeport, Connecticut ("facility").

2. At the facility, PSEG operates Bridgeport Harbor Station Unit 3, Connecticut Permit Number 015-0089, a tangentially-fired boiler, currently rated at 400 megawatts ("boiler"). The boilerhas the dual capacity
to operate on coal and/or fuel oil (No. 6 or No.2) No.2 fuel oil is used primarily as a start-up fuel. 

### A continuous emissions monitor ("CEM"), certified to 40 Code of Federal Regulations ("CFR") Part 75, measures nitrogen oxide ("NOx") emissions from the boiler.

3. During the year 1990, prior to installation of the new low-NOx firing system, and based on CEM monitoring, data, the**av~rage** annual NOx emission rate for Bridgeport Harbor Station Unit 3 was 0.58 pounds per million British thermal units ("lbs/MMBtu") of heat input when operating on coal, 0.28 Ibs/MMBtu of heat input when operating on No.6 fuel oil and 0.16

(PriMed on**R~c>'cl~d** Paper) ;9 Elm Slreel • Hanford. CT 06106·512; hl[?:/ldep.5111 .Ct.U 5

-"" #Eq"tll Opporr""lly EmployoPSEG Power Connecticut LLC 2 Trading Agreement and OrderNo. 8241

4. Ibs/MMBtu ofheat input when operating on No. 2 fuel oil. On and after May 31, 1995, the Regulations of Connecticut. State Agencies ("Regulations") require that BridgrPort Harbor StationUnit 3 emit NOx at a rate no**g~eater** than 0.38 Ibs/MMBtu ofheat input when operating on coal, 0.25 Ibs/MMBtu ofheat input when operating onNo.6 fuel oil and 0.20 Ibs/MMBtu ofheat input when operating onNO.2 fuel oil.

In December 1993, The United Illuminating Company, through its contractors, completed installation and began to test and make fully operational, a new lowNOx firing system at the facility, thereby reducing the boiler's NOx emission rates below its permitted, allowed and actual 1990 emission rates. Such control systemenabled PSEG's boiler to frequently meet and'operate below the emission limitation specified in Section 22a-174-22(e) of the Regulations.

5. Pursuant to Section 22a-174-22(j) of the Regulations, PSEG intends to acquire and generate approvedDERCs until May 1, 2005 at the facility. Approved DERCs are defined for purposes of this TradingAgreement and Order as those for which the Commissionerhas provided written authorization for

use in compliance with Section 22a-174-22 of the Regulations.

6. PSEG will acquire approved DERCs monthly on an asneededbasis, as determinedby actual NOx emissions in the event that the 24-hour average of actual NOx emissions exceeds the NOx emission limitations of Section 22a-174-22(e) of the Regulations and, starting on October 1, 2003, and during the period from October 1 throughApril 30, inclusive, in the event that the non-ozone season emission rate exceeds the emission rate specified in Section 22a174-22(e) (3) of the Regulations.**.~** 7. Upon issuance of this Trading Agreement and Order, and until May 1, 2005 for the ozone season and until October 1, 2003 for the non-ozone season, PSEG mayPSEG Power Connecticut LLC 3 TradingAgreement and OrderNo. 8241

8. obtain approval of actual reductions in NOx emissions, generated by operating the boiler at a rate which is below 0.38 lbs/MMBtu of heat input when operating on coal, 0.25 lbs/MMBtu ofheat input when**ope~ating** onNo.6 fuel oil, and 0.16 Ibs/MMBtu of heat input when operating on NO.2 fuel oil, for

use as discrete emission reduction credits ("DERCs"). IfDERCs are created during the ozone season, PSEG may obtain approval for such reductions for use as Budget emission reduction credits ("BDERCs")

. Starting on October 1, 2003, andduring the"period from October 1 throughApril 30, inclusive, each yearuntil May 1, 2005, PSEGmay only obtain approval of actual reductions inNOx emissions, generatedby operating the boiler at a rate which is below 0.15 Ib/MMBtu during the non-ozone season on coal, NO.6 oil, and/orNo.2 oil.



### ·0- 9. When properly documented by PSEG, and approved by the Commissioner, the reductions in NOx emissions identified above, and as computed in accordance with the terms of this Trading Agreement and Order, will conform to the requirements of Section 22a-174-22(j)(3) of the Regulations. Specifically, the reductions will 

### be,

Real because they result in a reduction of actual emissions released into the air, net of any consequential increase in actual emissions resulting from shifting demand. The emission reductions are properly measured, recorded and reported.

Quantifiable because they are based on continuous emission monitoring data as applied in an appropriate reliable and replicable protocol, providing the rate and total mass amount ofreduction.

Surplus because they are not required by any Connecticut statute or regulation mandated by a current State Implementation Plan ("SIP"), and are not currently relied upon in any applicable attainmentPSEG Power Connecticut LLC 4 Trading Agreement and OrderNo. 8241

plan, any reasonable further progress plan ormilestone demonstration.

Permanent pecause the advanced control system is in place**an~** operating, and an appropriate tracking system is in place to monitor all data required to verify and quantify the creation of DERCs.

Enforceable because the DERCs are approved by the Commissioner retrospectively after the submissionby PSEG of the seasonal or annual reports that will document their creation.

B.l. Ozone season 3DERCs maybe generated and used 

### in accordance with this Trading Agreement and Order.

B.2. Upon sufficient documentation as prescribedbelow, the Commissionermayprovide written approval of the generation of DERCs by PSEG retrospectively. ApprovedDERCs and BDERCs generatedby PSEG maybe heldby PSEG or transferred to otherpersons 

### in accordance with this TradingAgreement and Order.

B.3. The Commissioner, in accordance with the provisions of this TradingAgreement and Order, pursuant to Section 22a-174- 22(d)(3) of the Regulations, hereby allows PSEG to comply with Section 22a-174-22(d)(1) of the Regulations through use ofDERC trading.

C. With the agreement of PSEG, the Commissioner, acting under Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a-177 of the Connecticut General Statutes, orders PSEG as follows:

1. DERC generation. During the ozone season until May 1, 2005 and during the non-ozone season until October 1, 2003:

a. Forpurposes of generating DERCs from the boiler at the faCility, PSEG shall use 0.38 Ibs/MMBtu of heat input when operating on coal, 0.25 Ibs/MMBtu of heat input when operating on No.6 fuel oil and 0.16 lbs/MMBtu ofheat input when operating on No. 2 fuel oil as the baseline emission rates for the boiler, or

### PSEG PowerConnecticut LLC 5 

### TradingAgreement and Order No. 8241



# o

-. theproportionedbaselineemissionrate set forth in footnote 2 

### ofparagraphC.6. ofthis Trading Agreement andOrder, when simultaneouslyoperating on
more**th~n** 

### one fuel. PSEG shall use the above refereQcedbaseline emission rate(s) when calculating the proportioned baseline emission rate.

i. When calculating DERCs, PSEG shall use the lower 

### ofdaily total CEM-calculatedMMBtuvalue or actual fuel usage data for the boiler in 

### MMBtu/day, whendeterminingheat input.

ii. 

### Ten (10) percent ofall DERCs (tons) generatedby the boiler shall be retired by 

### the facility and permanentlyremoved fromall calculations ona dailybasis to assure abenefit to the environment.
b.StartingonOctober 1, 

### 2003 anduntil May 1, 

### 2005 during the non-ozone season: Forpurposes ofgeneratingDERCs from the boilerat the facility, PSEG shall use 0.15 lbs/MMBtuofheat input when operatingon coal, No.6 fuel oil, and/orNo. 2 

### fuel oil as the non-ozone season baseline emission rate for the boiler.

i.Whencalculating DERCs, PSEG shall use the lower of

non-ozone season total CEM-calculatedMMBtuvalue

or actual fuel usage data for the boiler in MMBtu/non-ozone season, whendeterminingheat input.

ii.Ten (10) percent of all DERCs (tons) generatedby the boiler shall be retiredbythe facility and permanently removed from all calculations on a nonozone seasonbasis to assure a benefit to the environment.

c. Non-ozone Season Restrictions. Non-ozone seasonNOx DERCs generatedby PSEG shall be created and approved in accordance with this TradingAgreement andOrder, and shall remainvalid until they are used oruntilPSEG Power Connecticut LLC 6 Trading Agreement and Order No. 8241

\



## ..... 2. theirvintage expiration date, whichever occurs first.

d. Ozone Season Restrictions. The boiler is subject to**Sec~ion,22a-174-22a** of the Regulations ("NOx Budget Program") in 1999 and everyyear thereafter. The boilermay generate ozone season BDERCs to complywith Section 22a-174-22 of the Regulations in accordance withparagraph C.I.a. of this Trading Agreement and Order and the following conditions and restrictions:

i.BDERCs shall onlybe generated by the boiler from May 1 through September 30 of a given year.

ii.BDERCs·shall only be used by otherNOx Budget Program sources located in Connecticut.

iii.BDERCs shall only be used to offset ozone season
excess emissions, and shall not be used for compliance during the non-ozone season.

iv.3DERCs generatedduring a given year shall onlybe used during the following ozone season. BDERCs may be generateduntil May I, 2005 under this Trading Agreement and Order. BDERCs are subject to all DERC**requiremen~s** set forth in this Trading Agreement and Order except for those requirements pertaining solely to non-ozone season DERCs and as otherwise may be provided.

During the ozone season until May 1, 2005 and during the

non-ozone season until October 1, 2003: In requesting approval of DERCs generated by the boiler, PSEG shall provide documentation containing a sample spreadsheet with calculation formulas used to determine reported numbers; monthly operating reports of actual fuel usage including the fuel BTU content, number of barrels, gallons, and cubic feet used for each fuel type; daily**MMBt~** for each fuel type and actual heat input based upon CEM-recorded data; daily weighted and unweighted actual NOx emission rates (24-hour average); and DERCs generated using the baseline emission race(s),

or the proportionedbaseline emission rate referenced in paragraph C.l. of this TradingAgreement and Order, netPSEG Power Connecticut LLC 7 Trading Agreement and Order No. 8241



# ,'--' .J 3. of the applicable environmental discount. During the non-ozone season starting on October 1, 2003 and until May 1, 2005: In**reques~ng** approval of DERCs generated by the boiler, PSEG shall prOVide documentation containing a sample spreadsheet with calculation formulas used to determine reported numbers; non-ozone season operating reports of actual fuel usage including the fuel BTU content, number of barrels, gallons, and cubic feet used for each fuel type; non-ozone season MMBtu for each fuel type and actual heat input based upon CEM-recorded data; nonozone season actual NOx emission rates (seven month average); and DERCs generated using the 0.15 Ib/MMBtu baseline emission rate(s), net of the applicable environmental discount.

When the daily or non-ozone season CEM-recordedNOx emission rate is used to calculate DERCs generated by the boiler, PSEG shall not include missing data calculated in accordance with any missing data substitution procedures, including those allowed under 40 CFR Part 75.

4. In order to consider CEM-recordedNOx emission rates valid for DERC,approval, all NOx and CO2/02 CEMs must comply with 40 Code of Federal Regulations Part 75.

5. Upon sufficient documentation, as determined by the Commissioner, that PSEG has met the requirements of this Trading Agreement and Order, the Commissionermay provide written approval of DERCs generated by PSEG retrospectively. Requests for approval of all DERCs generated shall be submitted in writing to the Commissioner. Such requests shall be compiled on a monthly or seasonal (during the non-ozone season only starting on October 1, 2003) basis and shall be submitted at least on an annual basis. Approved DERCs generated by PSEG under this Trading Agreement and Order may be held or transferred to otherpersons.

6. When the boiler has daily NOx emissions below the applicable baseline emission rate(s), or the proportioned baseline emission rate, or when the boiler



# -

# .PSEG Power Connecticut LLC 8 TradingAgreement and Order No. 8241

has seasonal NOx emissions below 0.15 Ib/MMBtu during the non-ozone season starting on October 1, 2003, PSEG shall calculate the amount ofDERCs generated on a 

## , daily/seaqonal basis (as applicable) as follows:

DERCs (tons) 

## ={[Total heat inputl of all fuels in MMBtu

x ((proportionedbaseline emission rate2) (the CEMrecordedNOx emission rate3))) +- 2000 lbs/ton} x (0.90).4

1 Heat input shall be calculatedusing the lower of CEMrecorded data or actual fuel usage data in MMBtu per unit of fuel combusted.

2 This rate shall be calculatedby l)multiplying the heat input of each fuel combustedby the baseline emission rate(s) for such fuel; 2) summing those products; and 3) diViding the sumby the total heat input. If the boiler is operating exclusively on one fuel, PSEG may replace the proportionedbaseline emission rate with the applicable baseline emission rate, for that fuel. Starting on October 1, 2003, the baseline emission rate during the non-ozone season shall be 0.15 Ib/MMBtu.

3 During the ozone season until May 1, 2005, and during the non-ozone·season until October 1, 2003, this rate shall be calculatedpursuant to the methodology described in 40 Code of Federal Regulations Part 75 and weighted pursuant to the Department's policy statement entitled "Guidance for Calculation of Emission Reduction Credits and Determination of Compliance with NOx RACT for Sources Subject to 40 CFR {Acid Rain Sources)H dated 12/18/98 which is attached to and incorporatedby reference into this Trading Agreement and Order as part ofAttachment 1.

Ten (10) percent of all DERCs (tons) generated by the boiler shall be retired by the facility and permanently removed from all calculations on a daily basis to assure

a benefit to the environment. Starting on October 1, 2003, during the non-ozone season, the ten percent discount shall be retired by the facility and permanently removed from all calculations on a seasonalPSEG Power Connecticut LLC 9 TradingAgreement and Order No. 8241

basis to assure a benefit to the environment.

7. DERC Use. Approved DERCs shall be acquired for**complianc~** with the emission standards in Section 22a174-22 of the Regulations for the period**begi~~ing** November 1, 2002 and continuing until PSEG achieves permanent compliance for the boiler with the emission standards in Section 22a-174-22(e) of the Regulations or until May 1, 2005, whichever occurs first. PSEG shall acquire approved DERCs, and document and record the
amounts ofNOx emissions andDERCs used by serial number (if assigned) by the boilereach day and starting.on October 1, 2003, also eachnon-ozone season, and shall maintain andprovide such records in accordance with the following and Section 22a-174-4 of the Regulations, until May 1, 2005:

a. At all times: Before the first day of each month, calculate projectedworst case DERCs required for that calendarmonth as follows:

DERCs (tons) = {[estimatedworst case NOx emission
rate in Ibs/MMBtu

- ((0.95) x (NOX RACT limit or proportioried emission rate calculatedpursuant to Section 22a-174-22(f)(2)(A) of the Regulations in lbs/MMBtu))J x (Estimated fuel use in MMBtu)) " 2000 pounds.

No later than the twentieth day of each month, PSEG shall calculate DERCs used in the preceding calendarmonth, as follows:

(1) For the boileron each day, determine whether the 24-hour average NOx emission rate* is less than the baseline emission rate or greater than the NOx RACT limit.

(2) When the boiler has a daily NOx emission rate (24-hour average) exceeding the NOx RP.CT limit, calculate the amount of DERCs used, as follows:PSEG Power Connecticut LLC 10 Trading Agreement and Order No. 8241

b. DERCs (tons) 

## = {[(CEM-recorded NOx daily average emission rate 

### in lbs/MMBtu*)

- ((0.95) x (NOx RACT 

## ,**limi~** or proportioned emission rate calculated pursuant to Section 22a-174-22(f)(2)(A) of the Regulations 

### in lbs/MMBtu»)] x (actual fuel use in MMBtu)) • 2000 pounds.

*This rate shall be calculatedpursuant to the methodology described 

### in 40 CFR Part 75.

During the non-ozone season starting on October 1, 2003, Starting on October 1, 2003, and during the period from October 1 through April 30, inclusive, each year until May 1, 2005, the boiler shall, 

### in addition to meeting the 24-hour emission limit in Table 22-1 of Section 22a-174-22 of the Regulations, meet a non-ozone season emission limit of 0.15 Ib/MMBtu. Prior to October 1, 2003 and October 1, 2004, PSEG shall estimate and acquire the amount ofnon-ozone seasonDERes or allowances needed to comply with Section 22a-174-22(e)(3) of the Regulations as follows:

Estimated DERCs (tons) .= [Estimated fuel use in MMBtu from October 1 through April 30 x (Estimated**max~mum** emission rate in Ib/MMBtu during October 1 through April 30

- (0.95 x 0.15 lb/MMBtu))] ) 2000 pounds.

No later than May 31 of 2004 and 2005, calculate DERCs used in the preceding non-ozone season as follows:

DERCs (tons) 

### = [Actual fuel use in MMBtu from October 1 through April 30 x {Actual emission rate in lb/MMBtu during October 1 through April 30

- (0.95 x 0.15 lb/MMBtu))) ) 2000 pounds.

PSEG shall acquire sufficient approved DERCs no

/PSEG Power Connecticut LLC 11 TradingAgreement and Order No. 8241

later than the first day of each month to assure compliance with the emission standards in Section**22a-l7~-22** of the Regulations for, at a minimum,**that~alendar** month. With the exception of3DERCs,

excess DERcs fromprevious months can be applied to subsequent months. BDERCs are subject to the limitations set forth inparagraph C.l.d. of this TradingAgreement and Order.

c. PSEG shall maintain documentation to attest to the fact that DERCs used during the ozone season were generated during the ozone season. Generator certification of this fact shall be sufficient.



# ,0··**.:~** . d. Pursuant to Section 22a-l74-22(d) (3) of the Regulations, PSEGmay use NOx allowances, pursuant to Section 22a-174-22{j) of the Regulations to achieve all or a portion of the reductions required by Section 22a-174-22 of the Regulations.**k~y** allowance used for compliance with Section 22a-l74- 22(e) of the Regulations shall be subject to all restrictions and/or requirements applicable to DERCs contained in this Trading Agreement and Order.**E~ch** allowance used for compliance with Section 22a-174-22 of the Regulations shall be equivalent to one discrete emission reduction credit and shall be deducted from PSEG's NOx Budget Program compliance account upon such use. Allowances shall be considered used for compliance with Section 22a-174-22 of the Regulations when they are transferred from the facility's compliance
account or overdraft account to a State of Connecticut NOx allowance retirement account.

i 

### .I**,~** 8.DERC Doubling. At a minimum, DERCs required shall be adjusted upwards by 100% ifDERCs are not in PSEG's possession prior to the first day of each month and, starting on October 1, 2003, each non-ozone season.

9.Vintage Restrlction. For the purposes of compliance with Section 22a-174-22 of the Regulations, DERCs/allowances shall only remain valid for five (5)PSEG Power Connecticut LLC 12 Trading Agreement and Order No. 8241

calendaryears from the year of the generation/allocation of such DERCs/allowances. DERCs/allowances generated/allocated more than five {S) calendarxekrs ago are not valid for use for compliance with Section 22a-174-22 of the Regulations. Notwithstanding the above, DERCs/allowances generated/allocatedprior to calendaryear 2000 are valid for use for compliance with Section 22a-174-22 of the Regulations up to and including December 31, 2004.

10. When the 

### daily ornon-ozone season CEM-recordedNOx emission rate is used to calculate DERCs used by the boiler, PSEG shall include missing data calculated in accordance with missing data substitutionprocedures under 40 CFRPart 75.

11. PSEG shall maintain records for the boiler showing daily NOx mass emissions, actual NOx emission rates (24-hour average), and starting on October 1, 2003 non-ozone
season NOx emission rates. PSEG shall also maintain records showing a daily total of all DERCs used and generated net of the applicable environmental discount.

12. No later thanMarch 1 of every year after issuance of this TradingAgreement and Order, PSEG shall include with the Annual Emission Statement provided to the Commissioner, a record of each sale or other transfer, and use of any and all of the DERCs approved within and subsequent to issuance of this Trading Agreement and Orderuncil all such DERCs have been used. PSEG shall also include actual NOx emissions from the boiler, and the amount of all DERCs used (including serial numbers (if assigned) and approvedDERCs generated and/or purchased from other facilities), generated and/or approved for the previous calendaryear. These reports shall be on a formprescribedby che Commissioner. Should PSEG choose to discontinue the generation of DERCs, PSEG shall nocify the Commissioner in writing upon discontinuance.



## ,

..

# ,- 13

. PSEG shall retain records and supporting documentation

as described in this Trading Agreement and Order for aPSEG PowerConnecticut LLC 13 TradingAgreement and Order No. 

### 8241

, 

### , . 

### 'J minimumof five years, commencing on the date such records were created. PSEG shall provide the records specified apove to the Commissionerwithin thirty (30) days of**re~eipt** of a written request from the Commissioner.

14. Approvals. PSEG shall use best efforts to submit to the**Comm~ss~oner** all documents reauired by this Trading Agreement and Order in a compfete and approvable form. Ifthe"Commissioner notifies PSEG that any document or other action is deficient, and does not approve it with conditions ormodifications, it is deemed disapproved, and PSEG shall correct the deficiencies and resubmit it within the time specifiedby the Commissioneror, "ifno time is specifiedby the Commissioner, within 30 days of the Commissioner's notice of deficiencies. In approving any document or other action under this Trading Agreement andOrder, the Commissionermay approve the document orother action as submitted orperformed or with such conditions ormodifications as the Commissionerdeems necessary to carryout the ourposes of this TradingAgreement andOrder. Nothing In this paragraph shall excuse noncompliance ordelay.

15. Definitions. As used in this Trading Agreement and urder, "Commissioner" means the**Comrn1ss~oner** or a representative ofthe Commissioner; "Ozone season" means the period from May 1 through September 30 in any given calendar year, and "NOx RACT" means NOx Reasonably Available Control Technology. The date of "issuance" of this Trading Agreement and Order is the date the Trading Agreement and Order is deposited in the U.S. mail or personally delivered, whichever is earlier.

16. Dates. The date of submission to the Commissionerof any oocument required by this Trading Agreement and Order shall be the date such document 

### is receivedby the Commissioner. The date of any notice by the Commissionerunder this Trading Agreement and Order, including but not limited to notice of**a~proval** or disapproval of any document orother**act~on,** shall be the date such**not~ce** is deposited in the U.S. mail or is personally delivered, whichever is earlier. Except as otherwise specified in this TradingAgreement and Order, the word "day" as used in this Trading Agreement and Ordermeans calendarday. Any document or action which is required by this TradingAgreement and**O~der** to be submitted orperformedby a date which falls on a Saturday, Sunday or a**Co~~ecticut** or federal holiday shall be submitted orperformed

### by the next,daywhich is not a Saturday, Sunday or**Connect~cut** or feoeral

### PSSGPowerConnecticut LLC 14 

### TradingAgreement and Order No. 8241

holiday.

17. Certificationofdocuments. Anydocument, including but not Ilmlteor

### to any nOtlCe, which is required to be**submitted~o** 

### the Commissionerunder this Trading Agreement and Order shall be signedby PSEG or, ifPSEG is not an individual, bv PSEG's chiefexecutive officer
or a 

### duly authorized representative of such officer, as those terms are defined in §22a-430-3(b) (2) of the 

### Regulations ofConnecticut StateAgencies, andby the individual(s) responsible for actually preparing such document, and PSEG or PSEG's chiefexecutive officer and each such individual shall certify in writing as follows: III 

### have I?ersonally examined and amfamiliar with the**inforrnat~on** 

### submittedin this document and all attachments thereto, and I 

### certify, basedonreasonable investigation, including my inguiryofthose individuals**respons~ble** 

### for obtaining the**~nformation,** 

### that the submitted information is true, accurate and complete to the best ofmyknowledge andbelief. I 

### understandthat any false statement made inthe submitted information is Dunishable as a criminal offenseunder §53a-157b ofthe Connecticut General Statutes andanyotherapplicable law."
18. Noncompliance. This TradingAgreement andOrder is a !lnal orderor the**Comrniss~oner** 

### with respect to the matters addressedherein, and is nonappealable and immediately enforceable. Failure to comply with this Trading Agreement andOrdermay subject PSEG to an injunction and.penalties.

19. False statements. Any false statement in any information**suom~~tea** 

### pursuant to this TradingAgreement and Order is punishable as a criminal offense under §53a-157bof the Connecticut General Statutes and any other applicable law.

20. Notice oftransfer; liabilityofPSEG. Until PSEGhas rully comoIledwltn**tn~s Trao~ng**  

### Agreement and Order, PSEG shall notify the Commissioner in writing no later than 15 days after transferring all or any portion of the facility, the operations, the site or the business which is the subject ofthis Trading Agreement andOrder
or after obtaining a newmailing or location address. PSEG's obligations under this Trading Agreement and Order shall not be affectedbv the oassage oftitle to any property to any otherperson or'municipality.

21. Commissioner'S powers. Nothing in this TradingAgreement
anauraer snall 

### arrect the Commissioner's authorlty to institute any oroceedino or take any other action to prevent or abate Violations oflaw, prevent orabatePSEG Power Connecticut LLC 15 TradingAgreement and Order No. 8241

22. pollution, recover costs and natural resource damages, and to impose penalties for past, present, or future violations of law. Ifat any time the Commissioner determines**~hat** the actions taken by PSEGpursuant to this**Trad~ng** Agreement and Orderhave not successfully corrected all violations, fully characterized the extent
ordegree of any pollution, or successfully abated or preventedpollution, the Commissionermay**~nstitute** any proceeding to require PSEG to undertake further lnvestigation or further action to prevent or abate violations orpollution.

P5EG's obligations under law. Nothing in this Trading Agreement ana Oraer snaIl**re~ieve** PSEG of other obligations under applicable federal, state and local law.**~,** 

### \.J 23. No assurance by Commissioner. No provision of this**Trad~ng** Agreement ana Oraer and no action or inaction by the Commissioner shall be construed to constitute an assurance by the Commissioner that the actions takenby PSEGpursuant to this Trading Agreement and Orderwill result in compliance orprevent or**a~ate** pollution.

24. Access to facility. Any representative of the Department or**~nv~ronmental** Protection may enter the facility without prior notice for the purposes of**monitor~ng** and enforcing the actions**requ~red** or allowed by this Trading Agreement and Order.

25. No effect on rights ofotheroersons. This Trading A9reement and Order nelther creates nor affects any**r~ghts** ofpersons ormunicipalities that are not parties to this Trading Agreement and Order.

26. No Creation of Property Rights. This TradingAgreement
ana Oreer aoes**no~** create any property rights**w~th** respect to these DERCs.

27. Notice to Commissionerof changes. Within 15 days of toe date**~S~G** necomes aware or 2 change in any information submitted to the Commissionerunder this TradingAgreement and Order, or that any such information was inaccurate ormisleading or that any relevant information was omitted, PSEG shall submit the correct oromitted information to the**Com~issioner.** 28. Notification of noncomoliance. In the event that P5EG
oecomes aware tnat**~t a~a** **no~** or may not comply, or did not ormay noe comply on time, with any requirement of this Tradlng Agreement and Order or of any document reqUired hereunder, PSEG shall immediately notify by telephone the individual identified in the nextPSEG PowerConnecticut LLC 16 TradingAgreement and Order No. 8241**:~ '~**  paragraph and shall take all reasonable steps to ensure that anynoncompliance or delay is avoided or, if unavoidable, is minimized to the greatest extent possible.**~ithin** five (5) days of the initial notice, PSEG**shal~submit** in writing the date, time, and duration of the noncomoliance and the reasons for the noncompliance ordelay-andpropose, for the review and written approval of the Commissioner, dates bywhich compliance will be achieved, and PSEG shall comoly with any dates which marbe aoproved in writing by the Commissioner.**Not~ficatlon** by PSEG shall not excuse noncomoliance ordelay, and the Commissioner's approval of any-comoliance dates orooosed shall not excuse noncompliance ordelay unless specifically so stated by the Commissioner in writing.

29. Submissionofdocuments. Any document required to be**subm~ttea** to tne**Comm~ssioner** under this Trading Agreement and Order shall, unless otherwise specified in this Trading Agreement and Order or in writing by the Commissioner, be directed to: Wendy Jacobs Department of Environmental Protection Bureau ofAirManagement Emissions and**Cred~t** Trading Section 79 Elm Street Hartford, Connecticut 06106-5127

### PSEG PowerConnecticut LLC 17 

### Trading Agreement andOrderNo.**82~1**



### PSEGconsents to the issuance ofthis TradingAgreement andOrder without further notice. The undersigned certifies that he/she is fully authorized to enterinto this TradingAgreement andOrder and to legallybind PpEGto the terms andconditions ofthe TradingAgreement and

### Order.

Issued as a final orderofthe 

# Ie) Environmental Protection on Signature:

Type

### Name:
Type Title:

Date: Connecticut LLC

Vice President

- Fossil 0gerations**Januar~** 24, 2003

;".



### .....

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CITYOFBRIDGEPORTLANDRECORDS

MAILEDCERTIFIEDMAIL, RETURNRECEIPT**REQu~STED** 

### CertifiedDocumentNo.



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